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At a P/E of 935, I would also sell all the shares I could. http://finance.yahoo.com/q?s=LNKD
So... why would it be a bad idea to short the stock now? Somebody talk me out of it before I make an expensive mistake.
At a P/E of 935, I would also sell all the shares I could. http://finance.yahoo.com/q?s=LNKD
So... why would it be a bad idea to short the stock now? Somebody talk me out of it before I make an expensive mistake.
Look what happened last month. P/E insane, stock at $200. LNKD releases decent numbers ("as expected, LNKD exceeded expectations"), and the market decides "yeah let's just keep that P/E at the same spot".
As someone else wrote, the market can stay irrational longer than you can stay solvent. Maybe if LNKD releases a "met expectations" or "missed by 1%" people will realise a 900+ PE is ridiculous and it'll tank.
Meanwhile, LNKD would be idiotic to not sell off some more shares.
Earlier quoted context omitted.
So... why would it be a bad idea to short the stock now? Somebody talk me out of it before I make an expensive mistake.
Shorting excellent companies that make lots of money is generally a bad idea.
At a P/E of 935, I would also sell all the shares I could. http://finance.yahoo.com/q?s=LNKD
Earlier quoted context omitted.
Yes. According to the prospectus[1] 4,165,972 shares new shares are being issues raising the outstanding Class A shares to 97,732,877. This is part of the reason there was a bit of a sell off after the announcement. [1] http://www.sec.gov/Archives/edgar/data/1271024/0001047469130...
Mathematically, their price should go down exactly (due to this announcement) (1 - Old # of outstanding shares / New # of outstanding shares)%
Earlier quoted context omitted.
So... why would it be a bad idea to short the stock now? Somebody talk me out of it before I make an expensive mistake.
Shorting excellent companies that make lots of money is generally a bad idea.
It's not that Linkedin isn't an excellent company or isn't making lots of money, it's that it is overvalued in the market unless its profits somehow balloon. It's the same problem Facebook had with its stock IPO.
LNKD will eventually crash if it doesn't wildly exceed expectations. It's most likely a bubble.
Earlier quoted context omitted.
So... why would it be a bad idea to short the stock now? Somebody talk me out of it before I make an expensive mistake.
This is why: the market can stay irrational longer than you can stay solvent. https://duckduckgo.com/?q=The+market+can+stay+irrational+lon...
LinkedIn is doomed the moment real competition appears. People only use it while grimacing with disgust.
All I can think of is walled gardens need upkeep LinkedIn is the most amazing business node graph out there - for a professional person online it has everybody and uptodate. But there is a wafer thin business model if they played their hand brilliantly - and they play it like a drunk Captain Hook trying second dealing in Vegas. I just hope that when / if it all collapses we can club together and transfer out the edge…